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RE: Why SBD will fail and how can we fix it?

in #steemit • 8 years ago

1 Steem per block is available for rewards .. parts of that steem are converted to SBD at the steem:sdb price. Only after that it will be available for payouts on posts etc .. That means, the higher the steem price, the more SBD are created and available to be paid for posts and vice versa

8 years ago in #steemit by
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     8 years ago (edited) 

    thank you for the explanation, but it does not solve the danger of big SBD holders scared for a down in SBD and Steem price sell and broke the peg

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       8 years ago  

      What's missing is liquidity and on-/off-ramps .. that's all ..
      In the meantime big SBD holders can always request a settlement/conversion and rest assure they get a fair price after one week .. then they can sell STEEM in more liquid markets ..